OVL, Angolan firm may tie up for exploration

India has proposed a joint venture between ONGC Videsh Ltd and Angola National Oil Company, Sonangol, for exploration ventures in Angola.

"Officials from Sonangol will be visiting India for discussing investment opportunities with ONGC Videsh," Angola External Affairs Minister Joao Bernardo De Miranda said after meeting Petroleum Minister Murli Deora today.

ONGC Chairman Subir Raha and OVL Managing Director S Butola were also present at the meeting.

Miranda said Angola would offer opportunities in the country in return for investment in infrastructure. "India has already invested close to $40 million. The Indian Railways subsidiary Rites is involved in rehabilitation of our railway network," Miranda said.

He added that Angola had invited an Indian delegation to visit its capital Luanda, to discuss the details of the deal. Miranda said the country required investment in agriculture, education and science and technology.

Butola said India was ready to visit Angola with various agencies like Rites that will invest in the country. He added that India wanted to enter into a strategic joint venture with Sonangol through an agreement between the two governments.

Meanwhile, OVL's chances of winning a deep-sea block in Angola seem bleak. While the highest bid for the block has been about $1.1 billion, OVL has bid just $310 million. The company recently lost one of the blocks to ENI of Italy.

However, OVL officials say there is still a chance for it to get a minority stake in the block as Angola gives blocks to consortiums rather than to just one company.

Subir Raha, who also met Miranda, said India would make efforts to make its strategic partnership with Angola successful.